Widens its Footprint in Metropolitan Austin
Castle Lanterra Properties (CLP) has acquired 1825 Apartments, a 455-unit community in Pflugerville, a suburb of Texas’ state capital of Austin, announced CLP founder and CEO, Elie Rieder. This is the third Austin acquisition for the N.Y.-based firm.
The community, named for State Route 1825 that fronts the property, consists of 60 buildings that were built in two phases: The 351-unit 1825 Place was completed in 2001, and the 104-unit 1825 Cottages was originally constructed in 1986. Community features include a resort-style pool with a waterfall, a 24-hour fitness center, a business center with WiFi access, outdoor playground and petpark, carports, attached and detached garages, and a recently renovated clubhouse.
“The previous owner recently spent more than $2 million on capital improvements,” said Jim Brady, vice president of operations and property management. “In addition to renovating the clubhouse, the effort included new roofs and siding at Cottages, exterior repainting, the installation of solar panels, and unit improvements. Our business plan calls for the continuation of upgrades to the units, as well as additional property beautification, upgrading the amenities already in place, and other proposed enhancements.”
As Texas’ state capital, Austin ranks number one for net in-migration of the top 50 metropolitan areas in the U.S. In addition to being situated near the epicenter of the region’s growing tech sector, the property has high visibility, nearby retail, easy access to major highways, and is located in the highly desirable Pflugerville school district.
The acquisition marks CLP’s third to date in the metropolitan Austin residential market. The firm entered the market in 2015 with the purchase of Stonegate, a 452-unit apartment community near downtown Austin, and earlier this year acquired Villas Tech Ridge, a 350-unit Class A apartment community located within the master planned development of Tech Ridge.
“We are pleased to be expanding our presence in metropolitan Austin,” said CLP managing director, Austin Alexander, who recently relocated to the city to oversee the firm’s operations in the southern region. “The city continues to bring in a highly educated and upwardly mobile workforce attracted by both the high-quality lifestyle and economic opportunities the city has to offer. As a long term owner, we look forward to contributing to the continued growth of this market.”
Formed in 2009, Castle Lanterra Properties is a privately held real estate investment company focused on the acquisition and management of quality income producing multifamily properties within strategic growth markets throughout the United States. Through a rigorous value-enhancement program that includes thoughtful renovations, operational improvements and ancillary income development, CLP aims to reposition each asset with the goal of maximizing NOI, elevating its competitive position within the market, and providing attractive risk-adjusted returns for its investment partners. CLP currently owns and manages a portfolio comprised of 6,800 units with a value in excess of $1 billion.
